California Case Summaries

Labor & Employment Law

Primary practice area

2nd District Court of Appeal, Labor & Employment Law, Litigation

Stoker v. Blue Origin — Blue Origin Arbitration Agreement Substantively and Procedurally Unconscionable; Severance Not Appropriate

Second District affirms denial of Blue Origin's motion to compel arbitration of former employee's FEHA sexual harassment and other claims, holding that the arbitration agreement is both substantively and procedurally unconscionable due to lack of mutuality and one-sided carve-outs, and that severance is not appropriate.

2nd District Court of Appeal, Labor & Employment Law, Litigation

Santana v. Studebaker Health Care Center — Multiple Arbitration Documents With Minor Ambiguities Form Enforceable Agreement

Second District reverses denial of motion to compel arbitration in nursing facility wage and hour class action, holding that three arbitration-related onboarding documents must be construed together and form an enforceable agreement despite minor ambiguities and the typical procedural unconscionability of an adhesion contract.

Ninth Circuit Court of Appeals, Labor & Employment Law, Litigation

Gessele v. Jack in the Box — Ninth Circuit reverses key wage-and-hour rulings, restoring class claims for shortened meal breaks and shoe-cost deductions under Oregon law

The Ninth Circuit reverses key rulings in a long-running Jack in the Box wage-and-hour class action, restoring class claims for shortened meal breaks under Oregon law and for non-slip shoe deductions, and ordering a trial on whether overdeductions for the Oregon Workers' Benefit Fund were willful.

6th District Court of Appeal, Labor & Employment Law, Litigation

Paknad v. Superior Court — Employer’s Avoidable Consequences Defense Waives Work Product Protection for Investigator’s Factual Findings

Sixth District grants second writ of mandate, holding that an employer that raised the avoidable consequences defense waived work product protection over the investigator's factual findings, and that allowing redactions of all factual findings exceeded the scope of any remaining work product protection.

Ninth Circuit Court of Appeals, Constitutional Law, Labor & Employment Law

Gonzales v. Battelle Energy Alliance — Ninth Circuit holds that revoking a Security Police Officer’s fitness-for-duty certification is reviewable under the ADA, distinguishing it from a national-security clearance

The Ninth Circuit holds that a federal contractor's revocation of a Security Police Officer's Part 1046 fitness-for-duty certification is reviewable under the ADA and is not the kind of national-security clearance decision insulated from review under Department of Navy v. Egan.

4th District Court of Appeal, Labor & Employment Law, Litigation

Walton v. Victor Valley Community College District — Nursing Student May Pursue FEHA, Education Code, and Government Claims Against District for Faculty Sexual Harassment

Fourth District reverses summary judgment for community college district on nursing student's sexual harassment claims, holding that the student has standing under FEHA, that her detailed pre-litigation letter substantially complied with the Government Claims Act, and that triable issues exist on her Education Code section 66270 deliberate indifference claim.

2nd District Court of Appeal, Administrative Law, Labor & Employment Law

L.A. County Professional Peace Officers Assn. v. County of L.A. — Union Did Not Clearly and Unmistakably Waive Right to Bargain Over Outsourcing Decision

Second District holds that a public employee union did not clearly and unmistakably waive its right to bargain over an outsourcing decision through an MOU clause referring to "reorganization," reversing dismissal of an unfair practice charge against Los Angeles County.

4th District Court of Appeal, Labor & Employment Law, Litigation

The Merchant of Tennis v. Superior Court — Class Action Curative Notice Must Warn of Potential Repayment of Rescinded Settlement Funds

Fourth District holds that a curative notice in a wage and hour class action must warn employees who rescind individual settlement agreements that they may be required to repay the settlement consideration if the employer prevails, applying California Civil Code rescission statutes rather than federal class action precedents.

3rd District Court of Appeal, Labor & Employment Law, Litigation

Pechkis v. Trustees of California State University — Anti-SLAPP fails where retaliation claims do not arise exclusively from protected investigatory activity

Third District affirms denial of an anti-SLAPP motion in a CSU professor retaliation case, holding that claims based 'in part' on communications with another university do not arise from protected activity when other unprotected employment decisions also support the claim.

1st District Court of Appeal, Labor & Employment Law, Litigation

Ehrenkranz v. San Francisco Zen Center — Ministerial exception requires actual ecclesiastical concern; Labor Code bond requirement applies only to employer entities

First District holds the First Amendment ministerial exception does not categorically bar a Zen Center worker's wage-and-hour claims, but Labor Code section 98.2's appeal bond is required only of the employing entity, not individuals also liable under section 558.1.

4th District Court of Appeal, Administrative Law, Labor & Employment Law

Bishop v. SDCERA — Public Employee’s Pension Forfeiture Survives Reduction of Felony Conviction to Misdemeanor

Fourth District holds a public employee 'convicted' of a job-related felony — by guilty plea — forfeits a portion of his pension benefits under Government Code section 7522.74, and that forfeiture is not undone when the felony is later reduced to a misdemeanor under Penal Code section 17(b).

6th District Court of Appeal, Administrative Law, Labor & Employment Law, Litigation

Zenith Insurance Co. v. Workers’ Compensation Appeals Board — WCAB Lacked Jurisdiction to Grant Reconsideration After 60-Day Statutory Deadline

Sixth District reverses a Workers' Compensation Appeals Board reconsideration order, holding the Board exceeded its jurisdiction by granting reconsideration after the former section 5909 60-day deadline ran and that the narrow grounds for equitable tolling were not satisfied.

4th District Court of Appeal, Labor & Employment Law, Litigation

Parsonage v. Wal-Mart Associates — ICRAA $10,000 Statutory Damages Available Without Proof of Concrete Injury in Employment Background-Check Cases

Fourth District reverses summary judgment for Wal-Mart, holding California's Investigative Consumer Reporting Agencies Act allows employees to recover the $10,000 statutory damages award for ICRAA disclosure violations without proving any concrete injury such as an adverse employment decision.

California Supreme Court, Labor & Employment Law, Litigation

Fuentes v. Empire Nissan — Tiny, Unreadable Contract Print Goes to Procedural, Not Substantive, Unconscionability — but Courts Must Scrutinize Illegible Terms Closely

The California Supreme Court clarifies that an unreadably small or blurry contract goes to procedural unconscionability, not substantive unconscionability — but illegibility triggers heightened scrutiny of the underlying terms for unfairness.

Appellate Division (Superior Court), Labor & Employment Law, Litigation, Real Estate Law

De Paolo v. Rosales — Tenant Protection Act’s Just-Cause Provisions Do Not Apply When Resident Manager’s Tenancy Ends With Termination of Employment

Los Angeles Appellate Division affirms an unlawful-detainer judgment against a resident manager whose tenancy was tied to her employment, holding the Tenant Protection Act's 60-day notice and just-cause requirements do not apply where housing was provided as employment compensation under a written agreement.

2nd District Court of Appeal, Administrative Law, Labor & Employment Law

Trustees of CSU v. Public Employment Relations Board — CSU Must Bargain Over Effects of Student Vaccination Policy on Faculty, but Not Yet Found in Violation

Second District holds the California State University has a duty under HEERA to bargain over reasonably foreseeable effects of its 2023 student-vaccine policy on faculty health, but vacates PERB's violation finding because there was no substantial evidence CSU had implemented the policy or definitively refused to bargain when the unfair-practice charge was filed.

4th District Court of Appeal, Labor & Employment Law, Litigation

The Merchant of Tennis, Inc. v. Superior Court — Curative Notice to Class Members Who Revoke Settlements Must Reflect California Rescission Statutes

Fourth District grants writ relief, holding that a curative class-action notice informing putative class members they may revoke individual settlement agreements must also tell them California rescission statutes require return of the settlement payment.

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